Likewise Grp Regulatory News (LIKE)

30 June 2022

Likewise Group plc

("Likewise", the "Company" or the "Group")

AGM Statement, Pre-Close Trading Update and Notice of Results

Likewise Group plc (AIM:LIKE), the fast growing UK floor coverings distributor, is pleased to be holding its first Annual General Meeting ("AGM") today since listing on AIM in August 2021.

At the meeting, Tony Brewer, Chief Executive of Likewise, will provide the following update to shareholders.

AGM Statement and Pre-Close Trading Update

Whilst the general economic position and weakness in consumer spending is well publicised, Sales Revenue in the 6 months to 30 June 2022 will be £57.8 million, an increase of 106.1% over the corresponding period last year. 

Organic Sales Revenue growth of businesses owned in the same period in 2021 is 27.3%. This has been achieved through the clearly defined strategy of investment in established Sales Representatives combined with multiple Sales and Marketing initiatives. 

This activity will be further accelerated in Q3 2022 with extensive New Product launches and additional Point of Sale Displays planned to take advantage of the traditionally busier trading period in the Autumn. 

We are extremely pleased with the development of the Likewise Trade Brand as demonstrated by the 27.3% sales increase. The acquisition of Valley Wholesale Carpets ("Valley") in January 2022 was a particularly important strategic step for Likewise. Valley will continue to be an autonomous business and is trading in line with our original expectations. The acquisition of Delta Carpets in April 2022 confirmed the Group's intention to bring bolt on opportunities into the infrastructure being established. 

To support the Sales and Marketing activity the Distribution Network continues to be developed. Construction is underway in Glasgow for a new 1.86 million cubic feet Distribution Centre which will be operational in Q1 2023. The search is progressing to relocate A&A in Manchester. Productivity continues to increase ahead of plan in Birmingham and Newbury is now servicing parts of the South of England. Agreement has been reached to relocate Likewise London into new premises to provide an improved service to customers in London and the South East.

The extension to the Derby Freehold Distribution Centre has commenced and the currently unused Newport Facility will be operational during Q3 2022 to allow Valley to supply new customers in South West England and South Wales. 

All of these developments culminate in enlarging the Logistics Capacity to over 15 million cubic feet compared to 8 million cubic feet in 2021 and provide the Group with a comprehensive geographic reach and capacity to achieve its medium-term objectives. 

The Group's various businesses issued new Price Lists to customers in May 2022 to reflect increased cost prices from manufacturers. Whilst having to absorb higher energy, fuel and packaging costs the Group is on target to achieve the management expectations for the year and more importantly establish the foundations to create a substantial Floorcovering Distribution business in the medium to long term.

Likewise is confident in continuing to increase market share through extensive product launches supported by additional Sales and Marketing activity with the focus on increasing profitability and subsequent reinvestment to further strengthen the business for the benefit of all suppliers, customers, employees and shareholders.

Notice of Results

The Group will be announcing its interim results for the six month period ended 30 June 2022 on 26 September 2022.

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